What to do if the bank terminates the loan agreement with us? This situation can happen to anyone, regardless of whether they took out a home or consumer loan , or used an online loan . By using this type of products, we sign a contract in which we commit ourselves to certain behaviors, if we fail to comply with them, we must take into account the consequences. Both banks and non-bank companies do not work for non-profit purposes, they have their costs and obligations that they must regulate, so their activity must also generate income.

Financial institutions may terminate the loan agreement if there are difficulties in recovering the debt. What can we do in this situation? Do we have any chance to get along with the bank?


When will the bank terminate the contract?

money loan

This can be done after the first unpaid installment. However, usually he only charges criminal interest in this situation. This is not a drama yet, because the interest is charged only on the installment, not on the entire loan.

This situation can happen again in a month or two, but in the third month it usually loses patience, and at this moment final decisions are made.


How to fix it?

How to fix it?

As soon as we can predict problems in timely repayment of a loan or a loan without certificates, we should immediately go to the bank and present our financial situation. Problems with repayment may not only be our fault.

Our creditworthiness may change if we suddenly lose our job, find better, or have unexpected expenses. Whatever happens – we have to pay back the installments. Therefore, as soon as any problems arise, we must contact the lender as soon as possible and find suitable solutions together.

We can’t wait that the problems will solve themselves, because then we can only get into even bigger ones. And putting off contact with the bank indefinitely, we only go into additional costs, because for each prompt addressed to us we will have to pay sooner or later. We do not count on the fact that the bank will try to understand our situation by itself.

However, if we neglect this element and the bank terminates the loan agreement with us, we are obliged to repay the entire liability in the period of notice. Usually this period is 30 days. However, it can be shortened when bankruptcy is involved. Then we must return the entire loan within 7 days.

Only when we have used a revolving loan, then we have at least 60 days to pay back. What if we have no money to pay back? Can we then count on a reduced tariff and understanding from the bank? Definitely not! Our movable and immovable property will probably be auctioned off in favor of the liabilities incurred.


When can the bank terminate the contract?

money loan

We can say goodbye to the loan if we were not honest when applying for it. In the application, we presented false information and supported it with forged employment or income certificates. Not too often, but there are cases when the funds obtained from the loan are allocated for a different purpose than it was indicated. Banks carefully check what the money from the loan was used for, and if they find any non-compliance, they can terminate the contract. When we consciously or unknowingly lower the value of the loan collateral. If the value of the property on which the mortgage has been established decreases, it may also result in termination of the loan agreement. However, before the bank decides to take such a step, it will ask us for additional security. Termination of the loan agreement may occur as a result of using the premises purchased for the loan contrary to their intended use. What does it mean? Let’s assume that we bought a flat using the “Rodzina Na Swoim” program and instead of using it personally, we allocated it for business premises, or sub-let it to other people. Of course, we did not inform the bank about this fact. We have 14 days to provide this type of information to the bank, otherwise we risk losing borrowed funds.


And what if the bank terminates the contract with us?

bank account

What in that case? Is there any chance to get along with the bank? It’s always worth a try. The statement on terminating the loan agreement is not a final decision, the bank may withdraw it at any time. This, of course, would be the best solution for us.

It is known that such a situation is neither pleasant nor comfortable for us, it costs a lot of time and of course it is accompanied by huge stress. However, we will be calmer, knowing that we have done everything we could to rectify this situation.

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